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Why are contracts important to your business?

On Behalf of | Jan 13, 2023 | Business Law

Contracts provide information about agreements between businesses and individuals. These documents should be detailed so they provide as much protection as possible. This doesn’t mean that you need it to be overly wordy or more complicated than necessary.

Some businesses use standard contracts for common transactions, but some require fully customized contracts. Understanding contracts can help you determine what you need to do to protect your business.

Points to include in contracts

The nature of the contract determines the exact points you need in a contract. Certain points are standard in contracts. These include:

  • Identifying information for both parties
  • Information about the project or job the contract covers
  • Schedule for payments and method of payment
  • Deadlines for project phases, completion and payment
  • Agreements or duties for both parties

Some contracts also include a clause covering dispute resolution. This sometimes limits breach of contract claims to alternative dispute resolution methods, such as arbitration or mediation. This can help companies to keep their legal expenses to a minimum if the contract isn’t followed.

Certain contracts should also include confidentiality clauses that limit or prohibit information about the transaction from being shared by either party. These should be spelled out clearly so there aren’t any questions about what’s protected and what can be shared with others.

Contracts require a business law attorney

Business owners must ensure that they have accurate contracts ready for any business transaction. Working with someone familiar with these matters ensures they have the protection they need for their company. The attorney who helps to prepare the contract can also assist with matters related to breach of contract.

The attorney should have great attention to detail and the ability to spot potential problems that can be addressed in the contract. When you have a business law attorney you can trust, you’re able to focus on running the company instead of worrying about the specifics of the contracts. This can help you grow your business while enjoying the protection that comes with solid and well prepared contracts.